Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2017

Changes in Projected Benefit Obligation

The following tables set forth pertinent information for the two Company-sponsored pension plans:

Changes in Projected Benefit Obligation

	Fiscal Year
(in thousands)	2017			2016
Projected benefit obligation at beginning of year	$	273,148		$	261,469
Service cost		2,553			461
Interest cost		11,938			12,182
Actuarial loss		27,388			8,268
Benefits paid		(11,109	)		(9,232	)
Projected benefit obligation at end of year	$	303,918		$	273,148

Change in Plan Assets

Change in Plan Assets

	Fiscal Year
(in thousands)	2017			2016
Fair value of plan assets at beginning of year	$	228,256		$	214,055
Actual return on plan assets		29,766			12,313
Employer contributions		11,600			11,120
Benefits paid		(11,109	)		(9,232	)
Fair value of plan assets at end of year	$	258,513		$	228,256

Funded Status

Funded Status

(in thousands)	December 31, 2017			January 1, 2017
Projected benefit obligation	$	(303,918	)	$	(273,148	)
Plan assets at fair value		258,513			228,256
Net funded status	$	(45,405	)	$	(44,892	)

Amounts Recognized in the Consolidated Balance Sheet

Amounts Recognized in the Consolidated Balance Sheets

(in thousands)	December 31, 2017			January 1, 2017
Current liabilities	$	-		$	-
Noncurrent liabilities		(45,405	)		(44,892	)
Total liability - pension plans	$	(45,405	)	$	(44,892	)

Net Periodic Pension Cost (Benefit)

Net Periodic Pension Cost (Benefit)

	Fiscal Year
(in thousands)	2017			2016			2015
Service cost	$	2,553		$	461		$	116
Interest cost		11,938			12,182			11,875
Expected return on plan assets		(13,597	)		(13,822	)		(13,541	)
Recognized net actuarial loss		3,402			3,031			3,230
Amortization of prior service cost		28			28			35
Net periodic pension cost (benefit)	$	4,324		$	1,880		$	1,715

Significant Assumptions

Significant Assumptions

	Fiscal Year
	2017			2016			2015
Projected benefit obligation at the measurement date:
Discount rate - Primary Plan		3.80	%		4.44	%		4.72	%
Discount rate - Bargaining Plan		3.90	%		4.49	%		4.72	%
Weighted average rate of compensation increase	N/A			N/A			N/A
Net periodic pension cost for the fiscal year:
Discount rate - Primary Plan and Bargaining Plan		4.44	%		4.72	%		4.32	%
Weighted average expected long-term rate of return on plan assets		6.00	%		6.50	%		6.50	%
Weighted average rate of compensation increase	N/A			N/A			N/A

Expected Weighted Average Long-Term Rate of Return

The Company’s pension plans target asset allocation for 2018, actual asset allocation at December 31, 2017 and January 1, 2017, and the expected weighted average long-term rate of return by asset category were as follows:

	Target			Percentage of Plan						Weighted Average Expected
	Allocation			Assets at Fiscal Year-End						Long-Term Rate of Return
	2018			2017			2016			2017
U.S. large capitalization equity securities		40	%		41	%		41	%		3.0	%
U.S. small/mid-capitalization equity securities		5	%		5	%		5	%		0.5	%
International equity securities		15	%		15	%		15	%		1.2	%
Debt securities		40	%		39	%		39	%		1.3	%
Total		100	%		100	%		100	%		6.0	%

Summary of Common/Collective Trust Fund Pension Plan Assets

The following table summarizes the Company’s common/collective trust fund pension plan assets. The underlying investments held in common/collective trust funds are actively managed equity securities and fixed income investment vehicles that are valued at the net asset value per share multiplied by the number of shares held as of the measurement date.

(in thousands)	December 31, 2017		January 1, 2017
Common/collective trust funds - equity securities	$	157,290	$	139,735
Common/collective trust funds - fixed income		100,500		87,814
Total common/collective trust funds	$	257,790	$	227,549

Reconciliation of Activity in Postretirement Benefit Plan

Reconciliation of Activity

	Fiscal Year
(in thousands)	2017			2016
Benefit obligation at beginning of year	$	85,255		$	70,361
Service cost		2,232			1,567
Interest cost		3,636			3,094
Acquisition of benefits		3,291			3,458
Plan participants’ contributions		752			662
Actuarial (gain)/loss		1,796			9,152
Benefits paid		(2,994	)		(3,135	)
Medicare Part D subsidy reimbursement		37			96
Divestiture of benefits related to the Deep South and Somerset Exchange Business and the Florence and Laurel Distribution Business		(17,340	)		-
Benefit obligation at end of year	$	76,665		$	85,255

Reconciliation of Plan Assets Fair Value in Postretirement Benefit Plan

Reconciliation of Plan Assets Fair Value

	Fiscal Year
(in thousands)	2017			2016
Fair value of plan assets at beginning of year	$	-		$	-
Employer contributions		2,205			2,377
Plan participants’ contributions		752			662
Benefits paid		(2,994	)		(3,135	)
Medicare Part D subsidy reimbursement		37			96
Fair value of plan assets at end of year	$	-		$	-

Funded Status in Postretirement Benefit Plan

Funded Status

(in thousands)	December 31, 2017		January 1, 2017
Current liabilities	$	3,678	$	3,468
Noncurrent liabilities		72,987		81,787
Total liability - postretirement benefits	$	76,665	$	85,255

Components of Net Periodic Postretirement Benefit Cost

Net Periodic Postretirement Benefit Cost

	Fiscal Year
(in thousands)	2017			2016			2015
Service cost	$	2,232		$	1,567		$	1,118
Interest cost		3,636			3,094			2,878
Recognized net actuarial loss		2,942			2,186			3,164
Amortization of prior service cost		(2,982	)		(3,360	)		(3,360	)
Net periodic postretirement benefit cost	$	5,828		$	3,487		$	3,800

Significant Assumptions

Significant Assumptions

	Fiscal Year
	2017			2016			2015
Benefit obligation discount rate at measurement date		3.72	%		4.36	%		4.53	%
Net periodic postretirement benefit cost discount rate for fiscal year		4.36	%		4.53	%		4.13	%
Postretirement benefit expense - Pre-Medicare:
Weighted average health care cost trend rate		6.94	%		6.20	%		7.50	%
Trend rate graded down to ultimate rate		4.50	%		4.50	%		5.00	%
Ultimate rate year	2025			2024			2021
Postretirement benefit expense - Post-Medicare:
Weighted average health care cost trend rate		8.07	%		7.50	%		7.00	%
Trend rate graded down to ultimate rate		4.50	%		4.50	%		5.00	%
Ultimate rate year	2025			2024			2021

A 1% Increase or Decrease in Annual Health Care Cost

A 1% increase or decrease in the annual health care cost trend would have impacted the postretirement benefit obligation and service cost and interest cost of the Company’s postretirement benefit plan as follows:

(in thousands)	1% Increase		1% Decrease
Postretirement benefit obligation at December 31, 2017	$	9,389	$	(8,323	)
Service cost and interest cost in 2017		668		(593	)

Reconciliation of Amounts in Accumulated Other Comprehensive Loss That Have Not Yet Been Recognized as Components of Net Periodic Benefit Cost

A reconciliation of the amounts in accumulated other comprehensive loss not yet recognized as components of net periodic benefit cost is as follows:

(in thousands)	January 1, 2017			Actuarial Gain (Loss)			Reclassification Adjustments			December 31, 2017
Pension Plans:
Actuarial (loss)	$	(119,644	)	$	(11,219	)	$	3,402		$	(127,461	)
Prior service (cost) credit		(101	)		-			28			(73	)
Postretirement Medical:
Actuarial (loss)		(40,502	)		(1,796	)		2,942			(39,356	)
Prior service (cost) credit		6,122			-			(2,982	)		3,140
Recognized loss due to the divestiture of the Deep South and Somerset Exchange Business and the Florence and Laurel Distribution Business		-			-			8,257			8,257
Total within accumulated other comprehensive loss	$	(154,125	)	$	(13,015	)	$	11,647		$	(155,493	)

Amounts in Accumulated Other Comprehensive Loss Expected to be Recognized as Components of Net Periodic Pension Costs or Postretirement Benefits Costs in 2018

The amounts in accumulated other comprehensive loss expected to be recognized as components of net periodic cost during 2018 are as follows:

(in thousands)	Pension Plans		Postretirement Medical			Total
Actuarial loss	$	3,681	$	1,238		$	4,919
Prior service cost (credit)		25		(1,734	)		(1,709	)
Total expected to be recognized during 2018	$	3,706	$	(496	)	$	3,210

Multi-Employer Plans

The Company’s participation in the Teamsters Plan is outlined in the table below. A red zone represents less than 80% funding and requires a financial improvement plan (“FIP”) or rehabilitation plan (“RP”).

	Fiscal Year
(in thousands)	2017		2016		2015
Pension Protection Act Zone Status	Red		Red		Red
FIP or RP pending or implemented	Yes		Yes		Yes
Surcharge imposed	Yes		Yes		Yes
Contribution	$	800	$	728	$	692

Supplemental Savings Plan [Member]

Liability Under Executive Benefit Plans

The liability under this plan was as follows:

(in thousands)	December 31, 2017		January 1, 2017
Current liabilities	$	8,205	$	7,339
Noncurrent liabilities		74,958		70,709
Total liability - Supplemental Savings Plan	$	83,163	$	78,048

Long-Term Retention Plan [Member]

Liability Under Executive Benefit Plans

The liability under this plan was as follows:

(in thousands)	December 31, 2017		January 1, 2017
Current liabilities	$	3	$	2
Noncurrent liabilities		2,563		1,256
Total liability - LTRP	$	2,566	$	1,258

Retention Plan [Member]

Liability Under Executive Benefit Plans

The liability under this plan was as follows:

(in thousands)	December 31, 2017		January 1, 2017
Current liabilities	$	2,949	$	3,359
Noncurrent liabilities		42,694		44,480
Total liability - Retention Plan	$	45,643	$	47,839

Performance Plan [Member]

Liability Under Executive Benefit Plans

The liability under this plan was as follows:

(in thousands)	December 31, 2017		January 1, 2017
Current liabilities	$	5,561	$	5,282
Noncurrent liabilities		4,527		5,651
Total liability - Performance Plan	$	10,088	$	10,933

Pension Plans [Member]

Anticipated Future Pension Benefit Payments

Cash Flows

(in thousands)	Anticipated Future Pension Benefit Payments for the Fiscal Years
2018	$	10,726
2019		11,350
2020		12,063
2021		12,815
2022		13,523
2023 – 2027		78,179

Postretirement Benefits [Member]

Anticipated Future Pension Benefit Payments

Cash Flows

(in thousands)	Anticipated Future Postretirement Benefit Payments Reflecting Expected Future Service
2018	$	3,678
2019		3,834
2020		4,063
2021		4,253
2022		4,603
2023 – 2027		25,204